New Delhi: While many of the problems ailing the infrastructure sector today are ones that can be dealt with outside the budgetary process, the industry will be looking for a renewed focus from the government on how it plans to go about bridging India’s huge infrastructure deficit.
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But with the current condition of the financial markets, the bigger problem the ministry of road transport and highways is grappling with is how they will lay tarmac on the ground if companies don’t bid.
The National Highway Authority of India is asking for more autonomy to be able to award projects on the Build-Operate-Transfer annuity model; where the government essentially pays annuities for projects, which don’t see interest from the private sector.
The construction industry also asks for clarifications on the Fringe Benefit Tax and asks that the government allow companies to borrow abroad without any end-use restrictions.